The Tennessee Valley Authority announced today that it has recovered another $150 million from one of its insurers for damages from the coal ash spill at the Kingston Coal Plant five years ago.
ACE Bermuda Insurance Limited, a property and casualty insurance company, will pay the federal utility another $150 million to cover some of the expenses from the Dec. 22, 2008 accident. Previously TVA was paid a total of $92 million from other insurers for damages from the Kingston accident. TVA has one other insurance claim pending for $50 million from the Kingston ash spill.
The payments are believed to be the biggest insurance payments ever for TVA. But they cover only a portion of the $1.1 billion TVA is having to spend to repair and restore the land and water in and around the Kingston Coal Plant.
More than 1.1 billion gallons of coal fly ash slurry spilled into the Emory River and its Swan Pond embayment when a dike ruptured three days before Christmas in 2008.The coal sentiments spilled over nearly 300 acres of nearby property.
TVA has spent $1.013 billion on the Kingston cleanup so far and expects eventually to spend a total of about $1.1 billion on the cleanup when the project is complete by 2015.
TVA is paying for the cost of the cleanup over 15 years, stretching until 2024.
TVA spokesman Duncan Mansfield said the insurance payments will help TVA lower the cost incurred by electric ratepayers for the cleanup.
Dave Flessner is the business editor for the Times Free Press. A journalist for 35 years, Dave has been business editor and projects editor for the Chattanooga Times Free Press, city editor for The Chattanooga Times, business and county reporter for the Chattanooga Times, correspondent for the Lansing State Journal and Ingham County News in Michigan, staff writer for the Hastings Daily Tribune in Nebraska, and news director for WCBN-FM in Michigan. Dave, a native ...